The wealth of the Persian Gulf monarchies, which skyrocketed with the 1970s oil crises, is now the biggest obstacle to their reform since it remains largely in the hands of conservative ruling families, analysts say.
"The authorities in the Gulf countries have a stranglehold on the economic potential of their countries, which is the main obstacle to real reforms," said Ahmed al-Diyan of the pro-reform Kuwaiti group the Democratic Forum.
"In our countries, the state is the biggest backer [of the economy] and the biggest employer, and controls the direction of the economy," Diyan said at a forum on Gulf reforms here which has gathered academics, thinkers and former officials.
In the region, he said, "the concept of power remains incompatible with the foundations of a modern state."
And despite small efforts at change over the past several years, "the authorities have not changed their way of thinking," while "the social forces which could undertake a reform project are weak," he added.
Calls for the Gulf states to reform have multiplied since the US launched a campaign to promote democracy in the region in the aftermath of the Sept. 11, 2001 attacks, as well as since the fall of Saddam Hussein's regime in Iraq.
The six Gulf states -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- have enormous oil and gas reserves, and a relatively small combined population of 32 million, which includes large expatriate communities.
But their political systems, with the exceptions of Kuwait and Bahrain, have remained stagnant. Kuwait has the region's oldest elected parliament while Bahrain restored its long dissolved legislature in 2002.
To introduce reforms in the countries, one would need "a real democracy, real popular participation in power," the former Bahraini education minister, Ali Fakhru, said at the two-day forum which ended Friday.
But "as long as the wealth does not belong to the people for the purpose of creating lasting development ... it will be difficult to talk of real reforms," he said.
He called for the creation of popular reform movements ready to campaign peacefully over the long haul for democracy, which he added could only come from internal pressure.
"Reform imposed from the outside is unacceptable," he said.
Emirati political science professor Ibtissam al-Kotbi added a warning that economic problems, especially rampant unemployment, risked causing the Gulf countries serious problems which could only be overcome with reforms.
"Political legitimacy in the Gulf countries is perpetuated thanks to money ... but it is not as easy to buy [people's] allegiance as it used to be," he said.
"As long as they are satisfied, the people are calm. But if they go hungry, they will start to rebel and resort to violence," he said.
Shares in Taiwan closed at a new high yesterday, the first trading day of the new year, as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) continued to break records amid an artificial intelligence (AI) boom, dealers said. The TAIEX closed up 386.21 points, or 1.33 percent, at 29,349.81, with turnover totaling NT$648.844 billion (US$20.65 billion). “Judging from a stronger Taiwan dollar against the US dollar, I think foreign institutional investors returned from the holidays and brought funds into the local market,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “Foreign investors just rebuilt their positions with TSMC as their top target,
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
H200 CHIPS: A source said that Nvidia has asked the Taiwanese company to begin production of additional chips and work is expected to start in the second quarter Nvidia Corp is scrambling to meet demand for its H200 artificial intelligence (AI) chips from Chinese technology companies and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to ramp up production, sources said. Chinese technology companies have placed orders for more than 2 million H200 chips for this year, while Nvidia holds just 700,000 units in stock, two of the people said. The exact additional volume Nvidia intends to order from TSMC remains unclear, they said. A third source said that Nvidia has asked TSMC to begin production of the additional chips and work is expected to start in the second
US President Donald Trump on Friday blocked US photonics firm HieFo Corp’s US$3 million acquisition of assets in New Jersey-based aerospace and defense specialist Emcore Corp, citing national security and China-related concerns. In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the US president to believe that it might “take action that threatens to impair the national security of the United States.” The order did not name the person or detail Trump’s concerns. “The Transaction is hereby prohibited,”